Io.net and Phala Network Partner to Improve Decentralized AI

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The rapidly evolving world of artificial intelligence (AI) is witnessing a groundbreaking collaboration between two innovative blockchain-based infrastructure platforms: io.net and Phala Network. This strategic partnership aims to redefine how decentralized AI applications are developed, deployed, and secured—by combining high-performance GPU computing with privacy-preserving trusted execution environments (TEEs).

At the heart of this alliance is a shared vision: making advanced AI computation more accessible, affordable, and secure for developers building in the Web3 space. As AI models grow increasingly complex, so do the demands on computational resources. Traditional cloud providers often come with high costs and centralized control, creating barriers for independent developers and decentralized projects. This partnership directly addresses those challenges.

Bridging GPU Power with Secure Computation

Io.net’s IO Cloud service offers on-demand access to high-performance GPUs, including cutting-edge Nvidia H100 and H200 models, which are renowned for their speed and support for confidential computing features like encrypted memory and secure boot. By leveraging a distributed network of GPU providers, io.net reduces infrastructure costs by up to 90% compared to conventional cloud platforms.

👉 Discover how decentralized GPU networks are transforming AI development

For Phala Network, this means immediate access to scalable, cost-effective computing power tailored for demanding AI workloads. Instead of relying on expensive hardware investments, developers using Phala’s ecosystem can now tap into io.net’s global GPU cloud to train and run sophisticated machine learning models—without sacrificing performance or security.

Enhancing Decentralized AI with Trusted Execution Environments

Phala Network stands out in the Web3 landscape as a privacy-first computing platform. It operates over 40,000 Trusted Execution Environment (TEE) CPU nodes, forming a decentralized infrastructure where sensitive data can be processed securely, even outside traditional blockchain environments.

TEE technology creates isolated, hardware-protected zones within processors—ensuring that data remains encrypted during processing and inaccessible to external parties, including system administrators or malicious actors. This makes Phala an ideal foundation for privacy-sensitive AI applications such as personalized healthcare analytics, confidential financial modeling, or secure identity verification systems.

With this partnership, Phala will integrate io.net’s GPU resources into its TEE node architecture. The goal? To enable TEE-enabled GPU computing—a significant leap forward in secure AI processing. In August, Phala introduced the first benchmark for TEE-capable GPUs, setting a new standard for measuring performance and security in confidential AI workloads.

Secure AI Workloads Through Confidential Computing

One of the most critical aspects of modern AI development is data privacy. As more applications rely on personal or proprietary data, ensuring confidentiality throughout the computation process becomes non-negotiable.

By combining io.net’s powerful Nvidia GPUs with Phala’s TEE infrastructure, the collaboration ensures that AI workloads are processed using confidential computing principles. This includes:

These features collectively create a trustless yet secure environment—perfectly aligned with the ethos of decentralization.

Advancing Research and Benchmarking for Future AI Infrastructure

The partnership isn’t just about deployment—it’s also focused on innovation. Io.net and Phala Network will conduct joint research and benchmarking initiatives, starting with performance evaluations of Nvidia H100 and H200 GPUs in TEE-enabled scenarios.

These benchmarks will help optimize resource allocation, improve efficiency, and guide future integrations. Ultimately, they aim to establish best practices for running AI agents and models in decentralized, privacy-preserving environments.

Additionally, Phala plans to integrate its AI agents and specialized hardware into the IO Network. This bidirectional integration will enhance both ecosystems:

👉 See how next-gen AI agents are being built on decentralized networks

This synergy could pave the way for a new generation of AI-driven Web3 applications—from autonomous DeFi advisors to privacy-preserving recommendation engines and self-updating smart contracts.

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Frequently Asked Questions

What is the main goal of the io.net and Phala Network partnership?

The primary objective is to enhance decentralized AI capabilities by combining io.net’s high-performance GPU cloud infrastructure with Phala Network’s secure TEE-based computing environment. This enables developers to run complex AI models affordably and securely within Web3 ecosystems.

How does this partnership improve AI security?

By integrating Nvidia’s confidential computing features—such as encrypted memory and secure boot—with Phala’s TEE technology, AI workloads are processed in isolated, hardware-protected environments. This prevents unauthorized access and ensures data integrity throughout computation.

Why are Nvidia H100 and H200 GPUs important in this collaboration?

The H100 and H200 GPUs offer industry-leading performance for AI training and inference tasks. Their built-in support for confidential computing makes them ideal for secure, decentralized AI applications—aligning perfectly with Phala’s privacy-first mission.

Can developers access these resources today?

Yes, developers can begin leveraging io.net’s IO Cloud for GPU access and utilize Phala’s TEE nodes for secure computation. The full integration of GPU-powered TEE environments is underway, with ongoing benchmarking expected to accelerate adoption in 2025.

What types of Web3 applications will benefit most?

Applications requiring both high computational power and strong data privacy—such as decentralized finance (DeFi) risk analysis tools, private NFT generators, healthcare data processors, and autonomous AI agents—will see significant improvements in performance and security.

Is this collaboration expanding beyond current technologies?

Yes. Beyond initial benchmarks on H100/H200 GPUs, the partnership includes plans for deeper integration of Phala’s AI agents into the IO Network. Future developments may include optimized tooling, SDKs, and developer incentives to foster broader ecosystem growth.

👉 Explore opportunities in decentralized AI development today

Final Thoughts

The convergence of decentralized infrastructure, secure computation, and high-performance AI hardware marks a pivotal moment in Web3 evolution. The partnership between io.net and Phala Network exemplifies how innovation thrives at the intersection of scalability and privacy.

As AI continues to reshape digital experiences, ensuring it remains open, affordable, and secure becomes essential. With TEE-enabled GPU computing now within reach, developers have a powerful new toolkit to build the next wave of intelligent, privacy-preserving applications—ushering in a future where decentralized AI is not just possible, but practical.